Given is a decision payoff table. Future Demand Alternatives Low Moderate High Small Facility 52 42 43 Medium Facility 50 49 49 Large Facility -15 38 51 a) The best decision under uncertainty using MAXIMAX is to select ( ) facility b) The best decision under uncertainty using MAXIMIN is to select ( ) facility c) The best decision under uncertainty using LAPLACE/EQUALITY LIKELY is to select ( ) facility d) If the probabilities for Future Demand when it is Low = 0.35, Moderate = 0.30, and High = 0.35, the expected monetary value (EMV) for the large facility = . e) If the probabilities for Future Demand when it is Low = 0.35, Moderate = 0.30, and High = 0.35, the best decision under risk is to select ( ) facility.

Given is a decision payoff table. Future Demand Alternatives Low Moderate High Small Facility 52 42 43 Medium Facility 50 49 49 Large Facility -15 38 51 a) The best decision under uncertainty using MAXIMAX is to select ( ) facility b) The best decision under uncertainty using MAXIMIN is to select ( ) facility c) The best decision under uncertainty using LAPLACE/EQUALITY LIKELY is to select ( ) facility d) If the probabilities for Future Demand when it is Low = 0.35, Moderate = 0.30, and High = 0.35, the expected monetary value (EMV) for the large facility = . e) If the probabilities for Future Demand when it is Low = 0.35, Moderate = 0.30, and High = 0.35, the best decision under risk is to select ( ) facility.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter9: Decision Making Under Uncertainty

Section: Chapter Questions

Problem 31P

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